Fajardo Development Co. v. Zalduondo
Fajardo Development Co. v. Zalduondo
Opinion of the Court
delivered the opinion of the court.
Enle 42 of this court provides that the brief of the appellant shall contain a true and concise statement of the case as it appeared in the record. This does not mean, as frequently happens, that the appellant should repeat the allegations of the pleadings and recite the documentary and oral evidence introduced by the parties. This true and concise statement should put the court in a position to know the particular errors complained of and not all the matters about which the parties have offered evidence and over the proof of which there is no dispute. In this case neither of the counsel has summarized the facts, but has contented himself
The complainant is a corporation organized under the laws of Connecticut. On November 1, 1905, the Governor of Porto Eico approved a franchise granted to said company by the Executive Council, and the said franchise was approved by the President of the United States on December
11, 1905, in accordance with the provisions of the Foraker Act. This franchise authorized the company to construct a railroad from Mameyes to'Naguabo with a special branch to the shore at Fajardo. In the second clause of said franchise it was ordered that the company should be obliged to present to the Commissioner of the Interior, for the approval of the Executive Council, a correct route of the line of said railroad. The exact words of the franchise are:
“An accurate survey of the route of said railway shall be submitted by the grantee to the Commissioner of the Interior for the approval of -the Executive Council within a reasonable time from that of the acceptance of this ordinance by the grantee, as hereinafter provided; and all plans for road-beds, tracks, side-tracks, culverts, bridges, and embankments and cuts for the general construction of the railway shall be submitted to the Commissioner! ol the Interior, and be approved by him before the work of construction shall proceed. The works already constructed by the grantee upon property acquired by it, or for its benefit, before the granting and acceptance of this ordinance, may be accepted and approved by the said Commissioner of the Interior. ’’
It was also provided in the franchise that the corporation should be obliged to finish the whole construction of the road within three years after the acceptance by the company of the franchise, and such acceptance took place on December
12, 1905. An extension to this 'franchise was duly obtained in 1909 and another in 1910, both approved by the Governor as presented. The latter extension, by its terms, fixed the time for finishing the road for September 9, 1910. There was, however, a clause in the extension of 1909 which provided
In accordance with the original franchise the company presented its plan of the road to the Commissioner of the Interior and it was approved by him late in 1905. In attempting to build its road the company, by reason of curves and declivities and acting upon the advice of its experts, found it necessary to change a part of'its route that lay between Ceiba and Nagmabo and submitted a plan to that effect to the Commissioner of the Interior.
The map or plan itself, as changed, is not found in the record although it was introduced in evidence apd certified to by the Commissioner of the Interior. There is a certificate of a memorial presented by the company to the Commissioner outlining the change, and this memorial was admitted in evidence. The evidence showed that the change of plan was approved 'by the Committee on Franchises of the Executive Council on August 4, 1910, of which committee the Commissioner was chairman; and the plan was also approved by the Executive Council. ^
The parcel of land which belongs to Miguel Zalduondo Yeve, the appellant, is one of the pieces to be crossed by the said railroad, as shown in its amended plan, but said land did not appear in the original plan approved by the Commissioner of the Interior in 1905. After the company had dé-
On May 7, 1910, and hence before the change of route had been approved by the authorities, the .respondent company wrote to Zalduondo offering him $100 per acre for his 23/100 acres of land and also $100 per acre as damages. In reply the said Zalduondo wrote the following letter to the company:
“Fajardo, May 10, 1910. To the Fajardo Development Co., Fa-jardo. Gentlemen: According to the letter dated the seventh of this month signed by your attorneys, Garvan and Armstrong, which I received yesterday, I am notified that, in accordance with the instructions of yourselves, if within ten days I have not accepted your propositions concerning a piece of land out of my lot at Ceiba they will initiate expropriation proceedings against me.
“This letter has surprised me beyond measure because you have reasons enough to be acquainted with me and to know that the writer is not a man to express two different minds about the same affair. My last word on this subject was uttered to your manager, Mr. Alvarez Torres, and to your attorney, Don Luis Muñoz Morales, some time ago.
“ “Furthermore, this company knows very well that I am not the man to yield under the pressure of a threat, but 'much to the contrary I am accustomed to combat them no matter what their source, preparing myself to answer them in due form.
“The essential object of my letter is to spare you the loss of time •which you may be caused by the ten days which you give me before carrying into effect your threat and to tell you at the same time that you are in error in thinking that you can condemn my property, because condemnation proceedings only lie when the necessity exists of passing over the land and I shall prove to the last degree that you*242 .are under no necessity of passing over my lot in question but that you have the deliberate intention of injuring me in my interests while thinking that a franchise is sufficient banner to protect such a pretense.
‘£ The law stands above everything and as always I am determined to insure that you and all those who contract or have dealings with me shall be compelled to observe it.
“To the expropriation then, without loss of time, and let him prevail who is in the right. ’ ’
At the trial the defendant objected to the admission of this correspondence on the ground that at the time the letters were written no declaration of public utility had been made.
The respondent company applied to the Executive Council for condemnation proceedings against the land of Zal-duondo Veve. The latter was notified to appear before the Executive Council and was thence referred to the Committee on Franchises, where his objections were heard. On August 25, 1910, the Executive Council passed a declaration of public utility with respect to the land of Zalduondo Yeve. On October 1, 1910, the present suit for condemnation of the land was begun. After the preliminary proceedings, issues joined, and after trial a judgment was rendered in favor of the complainant company, from which the defendant appealed and assigns four grounds of error:
. (a) The first assignment of error is that the court com.mitted error in not dismissing the complaint when it was shown that the land sought to be condemned was not included in the original map nor a copy of the amended map is to be found in the record. The memorial of the complainant company alluding to the changes is included in the statement, but the appellant has not pointed out the extent of the variation nor can we determine without expert aid or other proof to what the figures and words in that memorial refer. We shall have to presume that the memorial was duly approved by the Commissioner of the Interior and also that the changes were along the general line of the road, as the memorial itself indicates. The evidence tends to show that such changes were
The words quoted above from the franchise seem, furthermore, to give the Commissioner somewhat ample power. No injury to the public has been shown by reason of the plan having been finally determined in 1910 rather than in 1905.
(b) A second error is alleged inasmuch as the court did not decide that the franchise had been forfeited, and hence that the company had not the right to condemn. The principal ground for this contention is that the company failed to finish its work by September 9, 1910, as provided for in the extension granted in that year. It was the opinion of the Committee on Franchises of the Executive Council that the words contained in the extension of 1909, giving the Executive Council power to grant the company farther time for condemnation proceedings, were sufficiently broad to suspend the completion of that part of the work which involved such
We agree, moreover, with the respondent that the question of whether the corporation has forfeited a particular franchise can generally be only inquired into by the State in a proper proceeding begun for that purpose, citing Joyce on Franchises, 869, 875, and several California cases. The principle is that only the grantor, or his heirs, can avail himself of the breach of a condition subsequent with regard to an estate or a privilege granted. Schulenberg v. Harriman, 21 Wall., 44; United States v. Northern Pacific Ry. Co., 177 U. S., 440; Van Wyck v. Knevals, 106 U. S., 369; Atlantic and Pacific R. R. Co. v. Mingus, 165 U. S., 433; Kerfoot v. Farmers’ and Merchants’ Bank, 218 U. S., 287. And that forfeiture must be judicially declared as against a railroad company failing to complete in time is further set forth in Utah N. and C. R. Co. v. Utah and C. Ry. Co., 110 Fed., 889; In the matter of New York Elevated R. R. Co., 17 N. Y., 337, 338; Toledo and Ann Arbor R. R. Co. v. Johnson, 49 Mich., 148, 151. The franchise is a contract between the parties and the validity thereof must be determined in a suit between the State and the parties unless otherwise provided by the franchise. Thompson on Corporations, paragraph 5337; Riggs v. Cape Cod Ship Canal Co., 137 Mass., 71. And for similar reasoning see Compañía Azucarera v. Registrar of Property, 19 P. R. R., 147, and cases cited. The rule is the same where the franchise is granted in the state of domi-cil or in a foreign jurisdiction. Bank of Augusta v. Earle, 13 Pet., 599; Spring Valley Water Works v. Schottler, 62 Cal., 69, which case also shows the nature of a franchise.
(c) It is also alleged as error that'the company failed to make an offer of payment to the defendant and appellant
“Section 4. — Where a work has been declared of public utility and, for any reason, the owners of the property to be condemned refuse to consent to such condemnation as may be required, a cause of action shall thereby accrue to the person who' is to perform said work, who may bring said action against the said owners. * *
We think the plain intent of the statute as quoted is that an offer must be made and that the time for making it must be after the declaration of public utility, the same paragraph providing that a copy of the declaration of public utility must be inserted in the complaint.
The respondent further maintains that the declaration of utility was made by the original franchise and hence there was no need for a further declaration before making the
(d) The fourth point made by appellant was that the declaration of public utility was void. He maintains that he was not duly heard before the Executive Council. He was cited to appear before the Executive Council, was by it íeferred to the Committee on Franchises, where he was duly heard. We know nothing against this legislative practice and we only inquire as to whether he had a due chance to be heard, and we think he had. There is nothing in the point that the report was not signed by a quorum of the Executive Council but only by five members. These five members were the entire Committee on Franchises and, we are sure, re
The judgment mnst be affirmed.
Affirmed.
Case-law data current through December 31, 2025. Source: CourtListener bulk data.